Indices close flat on widespread profit-taking across the board

Nifty50 finished 7.15 points or 0.03% higher at 25,017.75

MUMBAI: Benchmark equity indices ended Tuesday’s trading session flat, with widespread profit-taking across the board.

The BSE Sensex closed at 81,711.76, gaining just 13.65 points or 0.02 per cent, while the Nifty50 finished 7.15 points or 0.03 per cent higher at 25,017.75.

Out of the 50 Nifty50 stocks, 31 ended in the red, led by losses in Titan Company, Hindustan Unilever, JSW Steel, Coal India, and Grasim, which fell by up to 2.04 per cent.

On the BSE Sensex, 19 out of 30 stocks declined, with Hindustan Unilever, JSW Steel, and Titan Company being the top laggards, each dropping by up to 2.01 per cent.

In the broader market, the Nifty Smallcap 100 index outperformed, gaining 1.05 per cent.

Top gainers of the day

Among sectors, Media and Financial Services were the top gainers, rallying up to 4.10%, while FMCG, Metal, Auto, and Consumer Durables sectors closed lower on Tuesday.

Nifty enters indecisive phase

Analysts observed that market sentiment has entered an indecisive phase, as the Nifty formed a Doji pattern on the daily chart. The significant activity from both call and put option writers at the 25,000 strike price reinforces the technical setup.

As a result, the Nifty is expected to remain range-bound or experience a slight dip in the near term. On the downside, 24,800 could provide immediate support, while a rise above 25,100 could push the Nifty towards 25,300.

Profit-booking

Analysts also noted that profit-booking near record highs impacted the domestic market. Despite positive expectations of a potential rate cut by the Fed in September, recent geopolitical tensions and rising crude oil prices have made investors cautious amid high valuations.

While IT and financial stocks continued to perform well, FMCG and metal stocks faced declines.

Additionally, the recent shift in Foreign Institutional Investors’ (FII) stance towards the domestic market, along with anticipation that the RBI will align with the Fed’s actions, is expected to foster a positive outlook in the near term.

Wall Street divergent

In global markets, the S&P 500 closed lower on Monday as investors awaited inflation data that could provide insights into the Federal Reserve’s interest rate decisions.

The tech-heavy Nasdaq also declined, while the Dow Jones Industrial Average, supported by strong performances from Caterpillar and American Express, finished slightly higher.

The S&P 500 dropped 0.32 per cent to close at 5,616.84 points. The Nasdaq fell by 0.85 per cent to 17,725.77 points, while the Dow Jones Industrial Average inched up by 0.16 per cent to 41,240.52 points.

Asia-Pacific peers down

Asia-Pacific markets mostly declined on Tuesday morning, despite the Dow Jones Industrial Average reaching new highs on Wall Street.

Investors in Asia are also focused on China’s year-to-date industrial profits as of July.

Japan’s Nikkei 225 was down by 0.35 per cent, while the broader Topix index remained flat.

South Korea’s Kospi decreased by 0.42 per cent, and the Kosdaq index dropped more sharply by 1.14 per cent.

Australia’s S&P/ASX 200 was the only major Asia-Pacific index in positive territory, gaining 0.13 per cent and nearing its all-time closing high of 8,114.7, set on August 1.

Hong Kong’s Hang Seng index futures traded lower at 17,694, compared to the previous close of 17,798.73.

Oil eases

Oil prices continued their rise late on Monday following weekend clashes between Israel and Hezbollah, with U.S. West Texas Intermediate crude jumping 3.5 per cent to close at $77.42 per barrel and Brent crude increasing by 3.05 per cent to $81.43 per barrel, the highest in nearly two weeks.

However, by Tuesday, oil prices had eased slightly, with WTI futures at $77.16 and Brent at $81.23.